Home Service Life Insurance

Definition - What does Home Service Life Insurance mean?

Home service life insurance is a policy priced well below its counterparts, with costs ranging from $10,000 to $15,000. It is sold by brokers who sell it door to door. It is popular among low- to middle-income buyers.

It is also known as industrial insurance.

Insuranceopedia explains Home Service Life Insurance

The term "home service" refers to the fact that the salespeople are assigned neighborhoods and sell the policy by visiting the homes within it. Payment can be made in cash or by mailing checks. This is what leads industry experts to call it a "no-technology system."

Because of its affordability, this policy is popular among a low- and middle-income demographics. It does, however, have its critics, who point out that it often appears to be inexpensive only because the cost is divided into monthly payments rather than a one-time sum. They also note that the coverage it provides may be lower than the accumulated premiums paid.
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